New Designation of Innovative Financial Service for Secondary Market Trading of Fractional Investment

Fractional investment products issued as investment contract securities will be allowed to be traded (bought and sold) on the Korea Exchange's on-market trading platform.

The Financial Services Commission held a regular meeting on the 13th and announced the designation of 10 new innovative financial services, including on-market trading of fractional investments.

Regarding the Korea Exchange, it was permitted to allow fractional investment products issued as investment contract securities to be circulated on the market. To this end, fractional investment products issued as investment contract securities will be recognized as securities under the Capital Markets Act even when circulated. Under current law, investment contract securities can only be issued but cannot be circulated.

For Dongyang Life Insurance and eight other companies, an exception to the network separation regulation was granted. Cloud-based software services (SaaS) provided via the internet will be allowed to be used within internal networks.

Additionally, regulatory improvement requests from Hanwha Investment & Securities, Korea Securities Finance, Casa Korea, and four trust companies were accepted. Legal revisions will be initiated so that services previously designated as innovative financial services?such as "non-face-to-face financial transaction services using facial recognition technology," "automation services for securities lending transactions," and "digitalization of real estate securitization beneficiary certificates using distributed ledger technology"?can be provided without regulatory exemptions.

This content was produced with the assistance of AI translation services.